Thoughtworks Holding Valuation
| TWKS Stock | USD 2.36 0.03 1.26% |
Based on Macroaxis valuation methodology, the company appears to be undervalued. Thoughtworks Holding has a current Real Value of $3.04 per share. The regular price of the company is $2.36. Our model measures the value of Thoughtworks Holding from inspecting the company fundamentals such as Shares Outstanding of 322.83 M, return on equity of -0.0885, and Operating Margin of (0.04) % as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend acquiring undervalued stocks and selling overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Thoughtworks Holding's valuation include:
Price Book 0.9998 | Enterprise Value 1 B | Enterprise Value Ebitda 51.6881 | Price Sales 0.6845 | Forward PE 39.8406 |
Undervalued
Today
Please note that Thoughtworks Holding's price fluctuation is risky at this time. Calculation of the real value of Thoughtworks Holding is based on 3 months time horizon. Increasing Thoughtworks Holding's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Thoughtworks Holding is useful when determining the fair value of the Thoughtworks stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Thoughtworks Holding. Since Thoughtworks Holding is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Thoughtworks Stock. However, Thoughtworks Holding's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 2.36 | Real 3.04 | Target 5.5 | Hype 2.35 | Naive 2.1 |
The real value of Thoughtworks Stock, also known as its intrinsic value, is the underlying worth of Thoughtworks Holding Company, which is reflected in its stock price. It is based on Thoughtworks Holding's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Thoughtworks Holding's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Thoughtworks Holding's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Thoughtworks Holding helps investors to forecast how Thoughtworks stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Thoughtworks Holding more accurately as focusing exclusively on Thoughtworks Holding's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Thoughtworks Holding's intrinsic value based on its ongoing forecasts of Thoughtworks Holding's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Thoughtworks Holding's closest peers. When choosing an evaluation method for Thoughtworks Holding, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Thoughtworks Holding Investments |
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Thoughtworks Valuation Trend
Knowing Thoughtworks Holding's actual value is paramount for traders to make sound investment determinations. Thoughtworks Holding's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Thoughtworks Holding's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Thoughtworks Holding's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Thoughtworks Market Cap
Thoughtworks Holding is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Information Technology industry is at this time estimated at about 1.06 Billion. Thoughtworks Holding totals roughly 771.56 Million in market capitalization claiming about 73% of equities under Information Technology industry.Thoughtworks Holding Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Thoughtworks Holding's current stock value. Our valuation model uses many indicators to compare Thoughtworks Holding value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Thoughtworks Holding competition to find correlations between indicators driving Thoughtworks Holding's intrinsic value. More Info.Thoughtworks Holding is currently regarded as top stock in price to earning category among related companies. It is currently regarded as top stock in price to book category among related companies . The ratio of Price To Earning to Price To Book for Thoughtworks Holding is about 558.44 . Price To Book Ratio is likely to drop to 1.88 in 2024. Comparative valuation analysis is a catch-all model that can be used if you cannot value Thoughtworks Holding by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Thoughtworks Holding's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Thoughtworks Holding's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Thoughtworks Holding's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Thoughtworks Holding and how it compares across the competition.
About Thoughtworks Holding Valuation
The stock valuation mechanism determines the current worth of Thoughtworks Holding on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Thoughtworks Holding. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Thoughtworks Holding based exclusively on its fundamental and basic technical indicators. By analyzing Thoughtworks Holding's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Thoughtworks Holding's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Thoughtworks Holding. We calculate exposure to Thoughtworks Holding's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Thoughtworks Holding's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 354 M | 374.8 M | |
| Pretax Profit Margin | (0.04) | (0.04) | |
| Operating Profit Margin | (0.02) | (0.02) | |
| Net Loss | (0.06) | (0.06) | |
| Gross Profit Margin | 0.31 | 0.39 |
8 Steps to conduct Thoughtworks Holding's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Thoughtworks Holding's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Thoughtworks Holding's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Thoughtworks Holding's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Thoughtworks Holding's revenue streams: Identify Thoughtworks Holding's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Thoughtworks Holding's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Thoughtworks Holding's growth potential: Evaluate Thoughtworks Holding's management, business model, and growth potential.
- Determine Thoughtworks Holding's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Thoughtworks Holding's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Thoughtworks Holding Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Thoughtworks Holding does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 317.7 M | |
| Forward Price Earnings | 39.8406 |
Thoughtworks Holding Current Valuation Indicators
Valuation refers to the process of determining the present value of Thoughtworks Holding and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Thoughtworks we look at many different elements of the entity such as Thoughtworks's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Thoughtworks Holding's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Thoughtworks Holding's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Thoughtworks Holding, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Thoughtworks Holding's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Thoughtworks Holding's worth.When determining whether Thoughtworks Holding is a strong investment it is important to analyze Thoughtworks Holding's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Thoughtworks Holding's future performance. For an informed investment choice regarding Thoughtworks Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Thoughtworks Holding. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in industry. For more information on how to buy Thoughtworks Stock please use our How to Invest in Thoughtworks Holding guide.You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Complementary Tools for Thoughtworks Stock analysis
When running Thoughtworks Holding's price analysis, check to measure Thoughtworks Holding's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Thoughtworks Holding is operating at the current time. Most of Thoughtworks Holding's value examination focuses on studying past and present price action to predict the probability of Thoughtworks Holding's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Thoughtworks Holding's price. Additionally, you may evaluate how the addition of Thoughtworks Holding to your portfolios can decrease your overall portfolio volatility.
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Is Thoughtworks Holding's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Thoughtworks Holding. If investors know Thoughtworks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Thoughtworks Holding listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (0.22) | Revenue Per Share 3.547 | Quarterly Revenue Growth (0.19) | Return On Assets 0.0015 | Return On Equity (0.09) |
The market value of Thoughtworks Holding is measured differently than its book value, which is the value of Thoughtworks that is recorded on the company's balance sheet. Investors also form their own opinion of Thoughtworks Holding's value that differs from its market value or its book value, called intrinsic value, which is Thoughtworks Holding's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Thoughtworks Holding's market value can be influenced by many factors that don't directly affect Thoughtworks Holding's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Thoughtworks Holding's value and its price as these two are different measures arrived at by different means. Investors typically determine if Thoughtworks Holding is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Thoughtworks Holding's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.